Property ownership in UK still regarded as a good long term investment
The majority of people in the UK still believe that property ownership is a good long term investment but fewer are buying, probably because of the credit crunch. Research has historically shown that most people aspire to own their own home and it is often said that 90% want to do so. But a survey from the Chartered Institute of Housing shows that fewer now want to. It is young people in particular who seem to have gone off the idea of property ownership. Just 37% of 18 to 24 year olds said they thought property ownership is right for them. But most people still believe it is worth investing in property with 70% saying overall that it was a good option. Just 14% of respondents believed renting was a cheaper and safer option than property ownership. However, there is some evidence that many people are looking again at the issue of home ownership. Over the past 12 months an estimated 2.4 million people have changed their opinion that homeownership is right for them, when asked their ideal living situation before the credit crunch and recession, compared to their ideal living situation now. |
Gap between selling and asking price in UK property market improving
The gap between asking and selling prices in the UK residential property market is narrowing according to new research. Almost 60% of surveyors are now reporting that the difference is declining, says the report published by the Royal Institute of Chartered Surveyors. Across the UK properties are selling at an average of 11% below the asking price with sellers in some regions being forced to accept as much as 26% discount off their advertised price. The worst affected area is the north where sellers are accepting offers, on average, at only 74% of asking prices. However, 63% of surveyors in that region did report that the gap is narrowing. The north west of the country has seen a slight improvement. Although the market is still weak, sellers are accepting offers of 84% of the asking price compared with 82% last August. In London the gap is the smallest in the country with sellers achieving 93% of the asking price and 55% of surveyors reporting that the gap had narrowed over the previous three months. |
